Baxter International Inc (BAX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,402,000 | 5,833,000 | 9,077,000 | 8,689,000 | 7,882,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $8,402,000K)
= 0.00
Baxter International Inc.'s debt-to-capital ratio has fluctuated over the past five years. In 2023, the ratio stands at 0.62, indicating that 62% of the company's capital structure is funded by debt. This represents a decrease from the previous year's ratio of 0.74. The trend in the debt-to-capital ratio suggests that the company has been actively managing its debt levels relative to its total capital over the years.
Comparing the current ratio to historical data, we note that the debt-to-capital ratio in 2023 is relatively in line with the ratio in 2021, which was 0.66. However, it is significantly higher than the ratios in 2020 and 2019, which were 0.42 and 0.40, respectively. This indicates an increase in the proportion of debt in the company's capital structure over the past three years.
Overall, Baxter International Inc.'s debt-to-capital ratio is an important measure of the company's leverage and financial risk. The decreasing trend from 2022 to 2023 may suggest that the company is strategically managing its debt levels to optimize its capital structure and strengthen its financial position.
Peer comparison
Dec 31, 2023